Why Is Insurance Expensive for New Cars?

[SaraFitz]

Because the insurance value of a new car is high. Insurance value refers to the value of the subject matter insured, which serves as the basis for determining the insured amount when the policyholder and the insurer enter into an insurance contract. It is the monetary estimation of the policyholder's insurable interest in the subject matter. Below is an introduction to car insurance: 1. Compulsory Traffic Insurance: A mandatory state-required insurance that covers the other party's property and personal safety. 2. Vehicle Damage Insurance: This insurance primarily protects the car. If the car is involved in an accident or suffers damage due to natural disasters, these losses can be compensated by the insurance company through vehicle damage insurance.